Public Improvement District (PID) Policy Planning Commission - - PowerPoint PPT Presentation

Public Improvement District (PID) Policy

Planning Commission Presentation August 7, 2019

Texas Infrastructure Financing Options

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Background

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• 1. Authorized by Ch. 372 of the Texas Local Government Code
• 2. Majority of property owners must petition city or county

for creation of a PID

• 3. City or County can create a PID, but City must authorize

creation of PID within City limits or ETJ

• 4. Elected officials serve as governing body – review PID

assessments and budget

• 5. PIDs must provide public benefit – improvements in a

gated community would not qualify

• 6. Revenues come from special assessments on properties in

district – either fixed amount or a rate

• 7. May issue special assessment revenue bonds

PID Process

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Source: R.R. “Tripp” Davenport, III, fms bonds, “Public Improvement Districts” presentation. February 2016.

“Process may take 9-12 months from introduction of project through close”

Top 10 Texas Cities

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City Population* Use PIDs Have a PID Policy Houston

2,308,000 Yes No

San Antonio

1,521,000 Yes No

Dallas

1,362,000 Yes Yes

Austin

959,000 Yes Yes

• Ft. Worth

876,000 Yes Yes

El Paso

685,000 Yes No

Arlington

394,000 Yes No

Corpus Christi

325,000 Yes No

Plano

284,000 Yes No

Laredo

264,000 No No * January 1, 2018 population estimates from Texas Demographic Center.

Comparison of PID Policy Components

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Dallas

(pop 1,362,000)

• Ft. Worth

(pop 876,000)

Lubbock

(pop 254,000)

Grand Prairie

(pop 196,000)

Kyle

(pop 43,000)

Sealy

(pop 7,000)

Marble Falls

(pop 7,000)

Minimum Size

Must be existing, developed area 1,500 acres None 175 parcels None 50 acres None

Limitation on Assessment Rate

$0.15 per $100 None None None None $0.60 per $100 None

Limitation on Terms

None 20 years None None 20 years 25 years 30 years

Administration

Internal and 3rd party Internal and 3rd party Internal Internal Internal and 3rd party 3rd party Internal and 3rd party

Value/Lien Ratio

None 3:1 ratio None None 3:1 ratio None 3:1 ratio

Limitation on Project Type

Limitations on improvements allowed in single-fam dist. Major infrastructure

• nly (arterials &

mains) Bond financing

• poss. for projects
• f at least $20M

No standard construction typical of new subdivisions Public Improvements None Preference for improvements that exceed development req.

Annexation Requirements

Within City limit & existing developed areas City limits None None Annexation required immediately after PID approval None Preference for PIDs within city limits

Application Fee

$15,000 $35,000 + $150,000 for 3rd party & addt’l amount as req. $5,000 & addt’l amount as req. None $15,000 $5,000 (not incl. in policy) $15,000 & addt’l amount as req.

Corpus Christi PID Policy Components

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Corpus Christi

Limitation on Size

None

Limitation on Assessment

None

Limitation on Terms

20 years

Administration

Internal or Third Party

Value/Lien Ratio

3:1 ratio

Limitation on Project Type

Preference for projects that exceed development standards, provide enhanced benefits, and meet community needs

Annexation Requirements

Yes or Development agreement for future voluntary annexation

Application Fee

$15,000

*Chapter 372 of the Texas Local Government Code

Bond Counsel Recommendations

• 1. Add provision that if there is any conflict between the city’s policy and the

TX Local Government Code, the Code prevails (Overview, last sentence)

• 2. Delete statement of council right to waive requirements in the policy since

this is understood (General, #7)

• 3. Add provision for revision of PID boundaries only if no PID bonds have been

issued (General, #11)

• 4. Delete language regarding PID expansion requiring each subdivision of

proposed new PID to meet petition requirements (Petition Requirements, 3rd section #1)

• 5. Add language that assessment will only be increased if no bonds have been

levied (Financing Criteria, #4)

• 6. Add language requiring verification of costs for public infrastructure that is

to be reimbursed by PID (Financing Criteria, 12)

• 7. Non-substantive editorial updates

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Recommendation

Staff Recommends Approval of the Resolution Adopting the PID Policy with Bond Counsel’s Recommendations

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